Blockchain startup Swarm announced Wednesday that it is launching new equity tokens that will represent equity in notable blockchain startups like Coinbase and Ripple – but those businesses have pushed back quickly against the idea. The blockchain for direct investment firm printed a blog post describing its new token project, with chief executive Philipp Pieper explaining in a statement that the tokens democratize investing and allow any Swarm investor hold equity in a few of today’s most notable technology startups.” . In a statement, a spokesperson for Swarm told CoinDesk that the tokens are company equity either from vested options or by venture capital, explaining that equity stems from approved secondary market transactions to obtain vested employee shares, or by venture capitalists who’ve directly acquired equity from all of these companies.” .
However when reached for comment, reps for Coinbase and Ripple were struck by sharply critical tones – and in case of Coinbase, a cease and desist has already been shipped, according to Swarm, leading to an updated statement which removed all references to Coinbase. As a private firm, Coinbase doesn’t permit trading of shares in secondary markets for many different reasons, including the fact that there isn’t full and equivalent info available to the market. We’ll take proper action if we find individuals have marketed Coinbase shares in violation of our agreements not to do so, said Coinbase CoinDesk in a statement.
Though there is no indication that a cease and desist letter was sent by them, a representative of Ripple issued a similar rebuke. We’ve never spoken to Swarm, do not possess a list of them buying Ripple equity and wouldn’t have accepted a purchase for this purpose, the rep stated. Image via Shutterstock. The leader in blockchain news, CoinDesk is a media outlet that tries for the highest journalistic standards and adheres to a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.